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Tesla reports 'record' quarter for auto sales
by Staff Writers
New York (AFP) April 3, 2015


China car giant SAIC records 12.8% profit rise in 2014
Shanghai (AFP) April 3, 2015 - China's largest automaker, SAIC Motor, said net profit rose 12.8 percent last year on strong passenger car sales but gains were stunted by slower growth in the world's number two economy.

The Shanghai-based firm said net profit was 27.97 billion yuan ($4.56 billion), up from 24.80 billion yuan in 2013, according to a statement issued to the Shanghai stock exchange late Thursday.

"In 2014, the domestic auto market slowed under the influence of the macroeconomic down trend," said SAIC, which has joint ventures with General Motors of the United States and Germany's Volkswagen.

China's economy expanded an annual 7.4 percent last year, the slowest in nearly a quarter of a century.

Overall auto sales in China -- the world's biggest car market -- rose 6.9 percent to 23.49 million vehicles last year, according to industry group the China Association of Automobile Manufacturers. In 2013, sales surged an annual 13.9 percent.

SAIC's operating revenue rose 11.4 percent year-on-year to 630 billion yuan in 2014, the statement said.

The company recorded sales of 5.62 million vehicles last year, up 10.1 percent from 2013, it said, adding that passenger car sales surged 16.2 percent to 4.60 million units but commercial vehicle sales plunged 11.0 percent to 1.02 million.

The car maker attributed the slump in commercial vehicle sales partly to stricter environmental standards. A number of Chinese cities have slapped limits on vehicle numbers to cut congestion and pollution.

The company's Shanghai-traded shares were up 1.80 percent by midday on Friday after releasing the results.

SAIC has set a sales target of more than 6.2 million vehicles this year, the statement said but warned it "may face risk from the macro-economy, market fluctuations and policy changes".

Electric carmaker Tesla announced Friday it delivered a "record" number of vehicles in the first quarter, as it began more timely reporting of sales figures.

The California firm started by tech entrepreneur Elon Musk said it sold 10,030 cars in the first three months of 2015.

"This was a new company record for the most cars delivered in a quarter and represents a 55 percent increase over the first quarter last year," the company said in a statement.

Going forward, Tesla said it would publish the number of new car deliveries within three days of quarter end.

"We have decided to take this approach, because inaccurate sources of information are sometimes used by others to project the number of vehicle deliveries," the statement said.

The statement noted that "this is only one measure of our financial performance and should not be relied on as an indicator of our quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles."

While Tesla produces relatively few vehicles, it has become a star in the sector due to keen demand and a reputation for high quality.

The company currently produces its luxury Model S, costing upwards of $69,000 but it is planning new vehicles including a more affordable model.

Last year the group sold some 55,000 vehicles.

Tesla has offered to allow rivals to use its patents for free in an effort to boost the electric car sector, and has made efforts to improve the range of the vehicles to ease concerns that they could lose power without a nearby charging station.

Earlier this week, Musk tweeted that the company would unveil a "major" new product line next month, leaving analysts guessing.

Some reports said Musk was likely referring to a home battery based on a design used in the Tesla vehicles, which he spoke about during a February earnings call.

lo-rl/bfm

TESLA MOTORS


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